Burundi government early this week made a tactical change of the bank notes as speculation continue to flood social media.
The Governor of the Central Bank (BRB) Dieudone Murengerantwari said that there was an increase in cash flow in the informal circuit, thus leading to the instability of the intermediation activities of financial institutions that collect, deposits and grant credits.
“There is also a deficiency in the banknotes of ten thousand Burundi frnacs (BIF 10,000) and five thousand Burundi francs (BIF5.000) in the coffers of banks and microfinance institutions leading to the destabilization of payment and money transfer activities,” said the BRB governor during a press conference in Bujumbura.
A ten-day deadline, expiring on June 17, 2023 was issued by the country’s central bank for all citizens to have deposited the old bank notes in their accounts with a specific cup on deposits per day.
“ Individual accounts the total deposits are limited to ten million Burundi francs (BIF 10,000,000) per day and on an account of a legal entity the total deposits are limited to thirty million Burundi francs (BIF 30,000,000) per day and per account. This limit does not apply to credit institutions, microfinance institutions collecting public deposits,” said Mr. Murengerantwari.
Gitega cautioned that those who will bypass this measure will be sanctioned in accordance with the legal and regulatory framework governing banking activities.
In 2022, Burundi president Evariste Ndayishimiye publicly warned individuals who keep their money in safe cases in their houses, urging them to deposit the money in the bank.
Analysts have differ their opinions over the new measure set by the country’s central bank, some say the move is to expose corrupt individuals who have embezzled public funds.